India on track to achieve 9.5% GDP growth in FY22: Michael Patra

Reserve Bank of India (RBI) deputy governor Michael Debabrata Patra believes that the Indian economy is on track to achieve its projected GDP growth rate of 9.5 per cent for 2021-22, supported by a recovery in capacity utilisation in manufacturing during the second half of the year, lower inventories and improving order books and production. On inflation, Patra stated that core inflation will remain sticky even though headline number has moderated since May. According to him, only 20 per cent of the items are responsible for more than 50 per cent of inflation. Three elements namely edible oils, LPG and petrol are contributing one-third of the inflation, he added. Patra expects the envisaged inflation glidepath to bring it down to 5.7 per cent or lower in 2021-22, to below five per cent in 2022-23 and closer to the central bank’s target of four per cent by 2023-24.